Argentine President Mauricio Macri has continued his run of economic reforms in a bid to get the country back on track after a long period of protectionist, populist policies.

The free-market advocate who took office last week has now lifted currency controls and floated the peso, in a bid to increase exports and spur economic growth.

Argentina’s previous leader, Cristina Fernández de Kirchner, had used central bank reserves to prop up the peso, and by lifting controls Macri now hopes to encourage investment in an economy plagued by low foreign reserves and high inflation.

The previous government measures were intended to stop currency leakage from the country, but the restrictions ended up discouraging foreign companies from investing in Argentina.

At the same time, the measures created a parallel currency market, known as the 'blue dollar'.

"We are very happy to be able to announce the end of the currency trap," Finance Minister Alfonso Prat-Gay was quoted as saying by Latercera.com.

"Lifting the currency controls means lifting the hurdles that have been restraining the economy for years. This is going to kickstart the economy and put it on the path of growth."

The Argentine peso weakened 29% to 13.89 per dollar as of midday yesterday in Buenos Aires on the MAE electronic trading platform.

The recent development has been welcomed by fruit industry representatives, with Federcitrus president José Carbonell saying the sector will now be able to regain its competitiveness.

"There is enormous satisfaction over the decision to put an end to the currency trap and in particular to unify the exchange rate," he told www.freshfruitportal.com.

He said the impact on the citrus sector would be 'significant' and undoubtedly positive.

"Argentina will be able to resume its growth and its progressively increasing participation in the world food market."

He added the lifting of currency restrictions put Argentina in a state of 'normality', and in line with productive and commercial conditions of the majority of other countries.

"These new measures, as well as a single exchange rate, are central, and a necessary condition to recover and strengthen the Argentine export economy," he said.

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